Wyoming’s only member of the U.S. House of Representatives wrote to the chairman of the U.S. Securities and Exchange Commission (SEC), urging him to not allow JBS’ proposed initial public offering (IPO) in the United States to proceed.
One year ago, JBS, the world’s largest poultry producer and a major player in the beef and pork industries, proposed a dual listing that would make its shares offered on stock exchanges in both its home country of Brazil and in the United States. Under the proposal, shares would be listed on the São Paulo Stock Exchange (B3) and the New York Stock Exchange (NYSE).
In doing so, JBS believes it would better reflect the company’s global presence, as well as unlock value for shareholders.
In a July 12 letter to SEC Chairman Gary Gensler, Rep. Harriet Hageman, R-Wyoming, addressed allegations of corruption on behalf of JBS, specifically naming brothers Wesley and Joesley Batista, former company executives who are sons of the company’s founder, José Batista Sobrinho. The brothers stepped down from their respective positions as CEO and chairman of the company in 2017 amid allegations of misconduct. They both returned to the board earlier this year.
“The fact that JBS has a history of bribery, deception and corruption should be enough to deter the SEC from approving JBS’ registration statement. That said, it is also worth noting the current difficulties small family farms are facing throughout this country. Many ranchers are dealing with an increasingly centralized, vertically integrated food supply chain which causes food prices to go up and results in more unfair practices towards small family farms,” Hageman wrote.
“JBS, the world’s largest meatpacker, perpetuates the problem of vertical integration and political corruption that boxes out small farmers and keeps them from competing with other large-scale food producers. This reality would be exacerbated if JBS is permitted access to our equity market.”
Hageman is not the first federal elected official to voice concern about the proposed dual listing to the SEC. In January, a group of U.S. senators joined forces to write a letter to Gensler, citing similar concerns. That letter was signed by Sens. Cory Booker, D-New Jersey; Ron Wyden, D-Oregon; John Barrasso, R-Wyoming; Richard Blumenthal, D-Connecticut; Sherrod Brown, D-Ohio; John Fetterman, D-Pennsylvania; Josh Hawley, R-Missouri; Robert Menendez, D-New Jersey; Chris Murphy, D-Connecticut; Marco Rubio, R-Florida; Bernie Sanders, I-Vermont; Jon Tester, D-Montana; Chris Van Hollen, D-Maryland; Elizabeth Warren, D-Massachusetts; and Peter Welch, D-Vermont.
Environmental groups Mighty Earth and Rainforest Action Network (RAN) have also expressed opposition to the potential IPO.
Hageman is in her first term in Congress.
